Manchester United are poised to sign Uruguay youngster Guillermo Varela.

Valera's Uruguayan club, Penarol, claim the 20-year-old, who spent time on trial at United near the end of last season, is now set to join the Premier League champions.

The right-back is understood to be joining for an initial fee of £1million, with the value of the deal potentially rising to £2.5m.

Varela, who will play for Uruguay at the Under-20s World Cup in Turkey later this month, will become the first signing under new boss David Moyes as he tweaks the squad inherited from the retiring Alex Ferguson.

Penarol club treasurer Rodolfo Catino was said to be travelling with Varela to Manchester to complete the deal, although it is not clear if the defender will be loaned back to the Montevideo club for next season.

Catino tweeted: "In Sao Paulo airport waiting for the connection to London, with Guille [Varela] about to board."